RIS3: Competitiveness and entrepreneurship Luisa Sanches Policy Analyst – Innovation DG REGIO Forum Outermost regions 2 July 2012

Cohesion Policy paradigm shift towards innovation SMEs are at the main actors for smart growth: they can create jobs and increased value added products and services………….. Entrepreneurship (self-employment and business start-ups) = key factor in job creation. Cohesion Policy provides an integrated approach to address the needs of SMEs, covering all phases from business creation (ERDF and ESF) to business growth… crossing the valley of death: from science to technology and products (pilot lines) to production and market.

Building from the past and breaking with it ERDF is the largest source of EU support to SMEs with a total volume of EUR 25 billion directly targeted at SMEs in the current financial period ( ) out of the 55 billion for Regional Policy business support ESF 14 billion for businesses to adapt to changing market conditions Many indirect forms of support exist: incubators, innovation vouchers, grants

Conclusions of the European Council of June 2012 The Structural Funds have reallocated funds in support of research and innovation, SMEs and youth employment and a further EUR 55 billion will be devoted to growth enhancing measures in the current period. Support to SMEs should be further strengthened, including by ensuring their easier access to EU funds. Member States have the possibility under existing rules and practices to work with the Commission in using part of their Structural Funds allocation to share the EIB loan risk and provide loan guarantees for knowledge and skills, resource efficiency, strategic infrastructure and access to finance for SMEs.

Only 1/3 of enterprises are satisfied with public support. The type of measures do not correspond to their needs. More than money and much more than research and technologies Money, but not only grants, also credits, guarantees, venture capital, etc.. Clients, markets (domestic, global) – connecting and networks Partners ( clusters, universities, value chains,...) Advice and support services to develop new business models and bring new ideas faster to the local and global markets Agile support and tailor-made measures What enterprises think of public innovation support … Are we giving what they need? Cohesion Policy See: DG ENTR (2009) /files/swd_effectiveness_en.pdf /files/swd_effectiveness_en.pdf

Objectives of cohesion policy Deliver the Europe 2020 strategy objectives of smart, sustainable and inclusive growth Focus on results Maximise the impact of EU funding through concentration Conditionalities (smart specialisation )

= place-based economic transformation agendas 1) Focus policy support and investments on key national/regional priorities, challenges and needs for knowledge-based development (= tough choices) 2) Build on each country's/regions strengths, competitive advantages and potential for excellence (= critical mass, differentiation) 3) Support all forms of innovation 4) Get stakeholders fully involved and encourage experimentation and private sector investment 5) Evidence-based and include sound monitoring and evaluation systems R&I Strategies for Smart Specialisation (RIS3) Cohesion Policy urces/docgener/informat/2014/smart_ specialisation_en.pdf

RIS3: not about sectors but cross-cutting activities Cohesion Policy RIS3 Skills: entrepreneurial, innovation management, creative … KETs for SMEs : Tech.transfer & audits, demonstrators, pilots Forestry Technologies Tourism Bio-Economy Renewable energy Hypothet ical example: Fields of "specialisation": new activities that show potential and have critical mass… or rather differentiation, diversification … Not an whole sector nor one single firm Which are my assets? Human: Existing businesses Universities Other knowledge institutions But also: The sea The land The climate The energetic resources and their potential etc The connected region: in search of complementarities with international partners

RIS3 is a process …and a journey RIS3 is a process …and a journey of «entrepreneurial discovery» What do they need? With whom to cooperate? Who are your customers / competitors? Is there critical mass / excelence? Clients Markets Services Cooperation (value chains) EnterprisesEnterprisesEnterprises Creativity Talents Research Knowledge Technologies Money Cohesion Policy See:

10 RIS3 guide - Key steps for developing a RIS3 Step 1 – Analysis of regional context/potential Step 2 – Governance Step 3 – Vision for the future Step 4 – Selection of priorities Step 5 – Policy mix Step 6 – Monitoring and evaluation RIS3 AnalysisProcessVisionPrioritiesPolicy mixMonitoring

Regions registered on the Platform 64 registered regions … more are in the process of registering 64 registered regions … more are in the process of registering The connected region: I am not alone

12 PART I: THE POLICY CONTEXT PART II: THE RATIONALE PART III: RIS3 DESIGN IN A NUTSHELL Annex I – A step-by-step approach to RIS3 design Annex II – Delivery instruments and horizontal approaches Annex III – Guidance for expert assessment Edited by JRC IPTS in association with DG REGIO and with contributions from: D. Foray, P. McCann, J. Goddard, K. Morgan, C. Nauwelaers, R. Ortega, Commission officials from various DGs and S3 Platform team Available on the S3 Platform webpage The RIS3 Guide

Incubators Universities & regional development Broadband Soon available: Clusters Social Innovation Green growth Entrepreneurial spirit Creativity Service innovation …. Inspiration for innovation support: Oslo Manual (OECD) Community framework for State Aid to Research and Innovation Analysis of regional innovation EURADA Directory of "No-Nonsense" Activities to Build S³- minded Regions; All money is not the same Thematic guides 13 Cohesion Policy

Information Proposals for the Structural Funds : RIS3 factsheet: n_en.pdf n_en.pdf S3 Platform: innovation/s3platform.cfm innovation/s3platform.cfm RIS3 guide: Cohesion Policy